Clothing Industry: Is It The Prey Of Capital Hunter Or Capital?

When the seven wolves were listed in China in 2004, private equity funds had not yet taken a fancy to China's textile and garment industry.

But now the situation has changed markedly, with many capital to China.

Stick out the olive branch.

Although there are different feedbacks from enterprises receiving capital discharge, but with Bosideng, Hong Kong share, news birds, Hai Lan's home, Luo Lai home textiles, seven wolves, Lun Sha shares, 100 round pants industry, and song and other enterprises listed on the market, it is easy to see that the enthusiasm of the capital market for this industry has continued until now, and there is no weakening trend.

New three boards or new enterprises financing direction

In November 29th, Guangzhou equity trading center ushered in a new listing - Guangzhou Hai Cheng Textile Technology Co., Ltd., which is amazing that the company was founded for only 3 months.

In such a short time, what does Guangzhou Hai ride textile technology limited attract investors?

Tang Lingbo, chairman of the company, said that in recent two years, the textile and garment industry is facing a sharp decline in foreign trade exports, a serious surplus of production capacity, and difficulties in the operation of the physical outlets in the domestic market, while the problem of oversupply of fake commodities exists in the electricity supplier.

In view of the industry pain point, Hai Kai's mall has launched an open DMC (designer, tailor shop, consumer) platform, layout online and offline, to provide users with free electronic wardrobe system services, through WeChat distribution mode promotion.

At the same time, it will provide free design and version for franchisees and reduce raw material costs through regional unified procurement of raw materials.

"The price of clothes in a shopping mall for more than 1000 yuan is 10 times the cost price. Our price tag is 2.5 times, but it has ensured that designers, processing and other sectors have certain profits."

Tang Lingbo believes that with the blowout of private custom demand and the growing demand of consumers for fashion, the related industries will usher in a new rapid development period.

Sun Ruizhe, vice president of China Textile Industry Federation, pointed out that from the global market, the largest number of listed textile and garment enterprises in China is

Enterprises and chemical fiber enterprises, industrial textiles, home textiles industry in the recent market attention has increased, textile culture and creative technology consulting industry.

Compared with other industries, the market value of China's textile and garment enterprises has increased rapidly. Compared with other industries, the scale of listing is small and there is huge room for growth. From the past, the trend of manufacturing enterprises listing to terminal products and brand type is obvious. Brand enterprises get more attention from the capital market, which is the direct embodiment of the results of China's textile and garment industry structural adjustment. The new three board market is developing rapidly and has become a new financing way for enterprises. The proportion of textile and garment industry in the venture capital fund is only 0.21%, and the development potential is huge.

Sun Jianbo, chief strategist of galaxy securities, who is very concerned about the domestic textile and garment industry, believes that the multi-level capital market is seriously inadequate for the real economy, especially the new three boards have opened the door to the capital market for all new enterprises, and is conducive to promoting the pformation and upgrading of the capital market.

There are more than 1200 SMEs in China, accounting for 99.7% of the total number of enterprises and 94.15% of small and micro enterprises.

Compared with mature capital market, China's capital market has a large number of listed companies with large market capitalization, and the proportion of small and medium-sized market capitalization companies and over-the-counter market, including small and medium sized boards and gem, needs to be improved.

He believes that the new three boards are facing significant historical opportunities. In the next 5 years, we should attach importance to the new three boards in the multi-level capital market.

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However, Sun Jianbo also reminded enterprises in the capital market planning which boards should be practical and realistic, and enterprises should choose proper "main body" to go public on their own actual conditions.

Enterprises should do well in the management of market value, and to do well in market value management, we must do well in main business planning, merger and acquisition services, staff arrangement, business and team management.

Enterprises should seek out good entrepreneurs, businesses and teams when they are making public funding, so as not to make simple public funding, but should not make all the chips from "raise money" to "everyone worries" or even "everyone turns their back on their enemies".

Invariably only a dead end.

Obviously, capital market can bring about rapid expansion of capital.

In previous interviews, many executives have stated that enterprises are not bad money. Although the capital strength of enterprises has been enhanced than before, if they want to be bigger and stronger, especially in the international market competition, the capital strength of clothing enterprises is not enough.

At present, the introduction of capital has become the trend of the whole industry. When competitors compete to use capital tools, there is only one way to refuse to contact the capital market.

La Natsu Bell, who has been trying to return to A shares for a year, seems to have thought a lot.

Just recently, La Natsu Bell's A share prospectus shows that in the next 3 years, the company plans to build 3000 more direct retail outlets on the basis of the existing 7147 retail outlets.

As a result, La Natsu Bell will enter the WAN Dian mode.

This is undoubtedly an opportunity and a challenge for La Natsu Bell, who has taken the whole direct camp mode in retail outlets.

Although the company's top executives have said that the online outlets are still the main selling channels, they have to expand in shopping centers, shopping malls and other shopping centers every year.

In the future, it will reach 1 stores and share them equally with the 10 brands of the company. Each brand has only 1000 stores, which is not a big scale in the Chinese market.

Professionals believe that, on the one hand, all shops are direct battalions. Therefore, enterprises need to take a strategic view of the future to see the future market. Instead of acting like agents, they may not operate because of bad market conditions; on the other hand, the company's business operations are in the domestic market, but there is no matching domestic equity financing platform, and H-share financing costs are higher and face foreign exchange risk.

Establishing a domestic equity financing platform will help companies improve the diversity of domestic financing channels and reduce the risk of debt financing.

In this regard, Zhou Jiahai, President of Zhejiang chemical industry group, holds the same view.

He believes that capital has liquidity, capital can help enterprises to quickly acquire resources, achieve strategic capabilities and achieve a rapid strategic path; capital can quickly realize incentives, achieve core team; capital can quickly fill the short board of enterprises.

It has done a lot of innovation and practice, and these innovations and practices may not succeed, but invariably they fail.

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"The importance of" industry + Finance (integration of industry and Finance) "to the development of China's textile and garment industry.

It helps to optimize the allocation of resources, with the help of the price signal and information mechanism of the capital market, can realize the synergy of institutional advantages, talent advantages, policy advantages and economic resources, carry out M & a reorganization, leap over space to achieve resource allocation, facilitate the formation of capital, and raise capital through capital market, which can realize capital expansion in a relatively short period of time, provide impetus for enterprise pformation and upgrading, help shape brand value, and make textile and apparel enterprises listed as public companies, which can enlarge the brand communication effect and enhance public awareness and trust degree of enterprises.

As Sun Ruizhe mentioned at the Humen summit of China Textile Innovation annual meeting.

"The Chinese textile and garment industry embraced the capital market at that time, with the advantages of dividend policy release, good platform foundation, huge market space, intelligent upgrading opportunities, and regional cooperation advantages."

At the same time, he also pointed out that China's textile industry

The five major investment directions of fashion pformation are intelligent production, creative design, fast fashion industry, global layout and cross-border development.

The combination of capital and industry is a double-edged sword.

"The vast majority of Chinese garment enterprises are private enterprises, and the enterprises in the future should survive and be ready for mergers and acquisitions. If they can find suitable M & A targets in the fashion field, mergers and acquisitions will create value for both the buyers and the sellers."

RobertoDona', senior consultant of the European Advisory Union.

However, in his view, a variety of phenomena show that many enterprises are not ready to meet capital requirements.

Take M & A as an example, in the past few years, many enterprises lack clear strategic planning before mergers and acquisitions, and too arbitrary selective mergers and acquisitions make the marginal effect of corporate profit growth decreasing.

For enterprises to choose how to create, buy or cooperate, and how to use capital, he believes that enterprises should focus on four aspects: product structure, operation and supply chain management, distribution and channels, and business mode innovation.

"The combination of China's textile and garment industry and capital market will have a good development."

Wu Xiaoqiu, director of the Institute of Finance and securities of Renmin University of China, gave his own judgement.

"China's capital market needs to be reformed: we need to improve and reform the focus of regulation, shift the regulation to the backstage, modify the" Securities Law ", and formulate a clear guideline for listing, issuing, trading and information disclosure which is consistent with registration system. Secondly, the regulatory body must be independent, the regulators are responsible for the law, not the market index, and not affected by the market index; thirdly, the paction system should be adjusted, especially the coordination of derivatives system, derivatives trading and cap and trade system, and more importantly, leverage reduction and deleveraging.

Of course, capital is a tool in the final analysis and a double-edged sword.

Capital operation is a process of enterprise development.

In the capital market coveted the clothing industry today, China's textile and garment industry should consider not only capital and capital operation itself, but how capital is used for us, and how capital operation helps enterprises develop rapidly.

Being a hunter of capital or a prey to capital, a state of celebration or a state of celebration, all of which determine the combination of capital and industry.